A group of doctors operates a joint surgery. They are planning to provide a private 29

Q.No.1 clinic where minor surgery can be performed on a day basis (no overnight facilities

will be offered). The project will require investment in a new building and operating

theatre. Three theatre nurses will be required and three healthcare assistants will be

employed. Admissions will be dealt with by the existing medical secretaries. The fees

charged will cover costs plus a profit percentage based on cost.

(a) Identify the judgements and decisions to be made here.

(b) Explain how management accounting may help in directing attention, keeping the